Things to think about before trying to sell a business

We recommend spending time to plan a sale well in advance of when you might want to actually begin the process.

To help you, we have compiled this list of things you might want to consider

Why are you selling?It is important to have a credible reason for a sale, one that a purchaser can understand and feel at ease with. It also helps structure the most advantageous transaction. Reasons for a sale can include:

Method of PaymentMost buyers may want to defer some of the consideration. Many buyers will be suspicious if you don't consider an element of deferred payment as it suggests a lack of confidence in your business, or a possible hidden agenda. That said, all deals are unique and structure depends on individual circumstance

What Do Buyers Look For?Being able to supply correct management information in a timely fashion shows that you are organised and efficient. Buyers may lose interest if basic information isn't to hand. A buyers and his advisers will probably raise the following issues in order to understand your business:

No SurprisesMost adverse situations, such as landlord/lease problems, outstanding loans, tax arrears, unfavourable equipment leases, health and safety issues, other regulations, and staff problems can be overcome providing they are disclosed.